Leadership in life insurance. April 2008

Leadership in life insurance April 2008

Agenda Indian life insurance opportunity Organisational overview Performance highlights 2

Agenda Indian life insurance opportunity Organisational overview Performance highlights 3

One of the fastest growing economies GDP growth rates (2006) 12.0% 10.7% 10.0% 9.4% 8.0% 6.0% 7.9% 6.8% 5.9% 5.0% 4.0% 2.0% 3.3% 2.7% 2.2% 0.0% China India Singapore Hong Kong Malaysia Korea US UK Japan India: FY 2007 (Financial year ended March 31, 2007), Others: calendar 2006 Source: International Monetary Fund, The Economist and the OECD 4

Indian economy : Key drivers of growth 10.0 9.0 9.0 9.4 8.9 8.0 7.5 GDP growth(%) 7.0 6.0 5.0 4.0 3.0 CAGR during 1990s : 5.2% 2.0 1.0 0.0 FY 2005 FY 2006 FY 2007 Apr-Dec 2007 Services sector growth Favourable demographics Industrial sector momentum Knowledge capital Globalisation Rural potential 5

Income growth 2000: 2000: Per Per capita capita GDP GDP US$ US$ 500 500 2007: 2007: Per Per capita capita GDP GDP US$ US$ 1,000 1,000 2015: 2015: Per Per capita capita GDP GDP US$ US$ 1,500 1,500 Middle and and high income population -- 260 260 mn mn 1 1 35% growth Middle and and high income population -- 350 350 mn mn 1 1 70% growth Middle and and high income population -- 600 600 mn mn 1 1 From per capita GDP of US$ 1,000 to US$ 1,500: Rapid growth in consuming population 1. Estimates based on NCAER data. 6

Increasing proportion of working population (Age group) 2006 2026 (percentage of population) 65+ 5 8 To further fuel India s growth and rising disposable income levels 15-64 63 69 Shift towards nuclear families Increased savings and protection needs 0-14 32 23 Source: Census of India 7

India life insurance opportunity Only a third of the target population is insured Insurance per capita (USD) 6000 5000 4000 3000 2000 1000 0 Life insurance penetration & per capita (2006) 13.1% 5,140 9.2% 8.3% 7.9% 2,829 2,456 5.4% 4.0% 1,617 1,480 3.2% 4.1% 1.7% 1,790 189 34 33 UK Japan Hong Kong US Singapore Korea Malaysia China India 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Insurance penetration Source: Swiss Re 8

Protection levels in India are still low Per cent, 2005 India (FY 2006) 1 UK Sum assured to GDP ~45 96 Korea 166 Singapore US 187 208 Thailand 60 Germany 104 Malaysia 170 9 1. FY 2006: Financial year ended March 31, 2006 2. Source: IRDA, Swiss Re, Country Insurance handbook, McKinsey analysis

Evolution of industry: Growth FY 2000 Number of players 1 NB premium (Rs bn) 64.00 Total premium (Rs bn) 270.00 CAGR of 42% CAGR of 30% FY 2007 1 16 754.00 1,696.00 Penetration (as a % of GDP) Insurance premium per capita (Rs ) 1.2% ~280 4.1% ~1,510 1. FY 2007: Financial year ended March 31, 2007 2. Source: IRDA, Swiss Re 10

Evolution of industry: Changing landscape Traditional products Life products Linked products: 79% of the overall market Emergence of Health & Pensions: 16% of overall market Agency channel Multi channel distribution Service delivery through branches only Technology driven service delivery: Call centres, E-mail 11

Industry growth Rs bn 500.00 450.00 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 Y-O-Y Growth 16% 17% 34% 92% 37% FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Apr-Feb 2008 LIC Private 12 FY: Financial year ended March 31 Source: IRDA, weighted new business premiums for individual business

Agenda Indian life insurance opportunity Organisational overview Performance highlights 13

Key strategic elements Distribution Build-up of agency Pioneering alternate distribution Product Need-based innovative and flexible products High brand salience People Talent from diverse industries Capability development across functions Service Scalable delivery architecture Aggregate capital infusion of Rs 37.72 bn (USD 945 mn) 14

Sustained private market leadership FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Apr-Feb 2008 1 2 3 4 5 15 FY: Financial year ended March 31 Based on weighted new business premiums for individual business

Market share: Retail market Birla Sun Life 3.0% Others 10.4% Apr-Feb 2008 Reliance Life 3.6% HDFC Standard 4.3% SBI Life 4.7% LIC 50.3% Bajaj Allianz 10.6% ICICI Prudential 13.1% Source: IRDA, weighted new business premiums for individual business Total mkt : Rs 432.16 bn (USD 10.8 bn) 16

Leadership on other parameters 90.00 80.00 Apr-Dec 2007 Rs bn 70.00 60.00 50.00 40.00 40% 28% Total premium 30.00 20.00 10.00 14% 45% 14% 0.00 ICICI Prudential Bajaj Allianz SBI Life HDFC Standard Reliance Life Single Initial Renewal 300.00 284.09 Apr-Dec 2007 250.00 200.00 Assets held Rs bn 150.00 100.00 125.79 88.59 86.01 50.00 30.50 0.00 Source: Life Insurance Council website ICICI Prudential Bajaj Allianz SBI Life HDFC Standard Reliance Life 17

Consumer mindshare 120 100 80 60 40 20 100 96 97 79 90 89 62 41 83 80 45 32 Brand saliency & purchase consideration 76 74 71 27 25 25 62 54 18 19 0 LIC ICICI Prudential HDFC Standard Bajaj Allianz SBI Life TATA AIG Reliance Life Kotak Life Birla Sunlife Max NYL ING Vysya Total aw areness Consideration (intenders) Source: Life Insured; AC Nielsen Brand Health Monitor as of April 2007 18

Rapid expansion in policy base 2 months 7.0 5 months 5 months 6 7 6.0 5 months 5 Mn 5.0 4.0 3.0 2.0 1.0 44 months 0 1 16 months 2 8 months 3 4 0.0 December 2000 October 2004 February 2006 October 2006 March 2007 August 2007 January 2008 March 2008 19

backed by market innovation Continued development of the market with new products and services Leading the evolution of unit linked products Introduction of LifeStage RP: Automatic asset allocation and increased protection Focus on emerging segments Health Link Pensions Link Health: Introduction of 9 health products, including innovative health product for diabetics Pensions: Emphasis on retirement planning backed by a comprehensive product suite 20

Health opportunity Health Link Low health penetration High out of pocket expenditure Large informal sector Increase in health spends Over 85% of the population without health cover Only 1.6% of private healthcare expenses 1 covered through insurance Around 75% of population in informal sector without employer-provided coverage 15.9% CAGR of private health expenses in last five years 1. Estimated at Rs 1400.00 bn 21

Health business: Building capabilities Health Link Dedicated direct distribution channel extended to 53 cities Pharmacy channel launched Innovative products Crisis Cover: A comprehensive policy covering 35 critical illnesses, disability & death Hospital Care: A fixed benefit hospital plan with cashless facility 22

backed by market innovation Continued development of the market with new products and services Leading the evolution of unit linked products Introduction of LifeStage RP: Automatic asset allocation and increased protection Focus on emerging segments Health Link Pensions Link Health: Introduction of 9 health products, including innovative health product for diabetics Pensions: Emphasis on retirement planning backed by a comprehensive product suite 23

Retirement opportunity Pensions Link No. of people (Mn) 1400 1200 1000 800 600 400 200 0 135 159 115 88 99 76 2000 2005 2010 2015 2020 2025 Year Population Below 20 yrs Population between 20-59 yrs Population above 60 yrs Age group of 60+ is the fastest growing and will almost double in the next 20 years Source: Oasis Committee Report 24

Comprehensive product offering Products for the accumulation phase Pensions Link Advanced ULIP products with automatic asset allocation Different premium paying options Range of funds offered Products for the payout phase Range of annuity options Life annuity, joint life annuity, annuity with return of purchase price Annuity guaranteed for 5, 10, 15 years Launch of Annuity Card First of its kind debit card in Asia for annuitants Philosophy: Different customers, different needs 25

Retirement solutions campaign Pensions Link Retirement solutions: Key focus area of the company in brand communication Commenced with Retire from work, not life campaign Retirement planning weaved into the recent corporate campaign Jeetey Raho New campaign: Plan your NUMBER with us To enhance action orientation of consumers in planning for retirement 26

Distribution strategy Continue to expand to take advantage of market size and increased affluence New branch roll out @ ~2 per day in the last 8 quarters Increase in direct and partnership distribution Pan India coverage through 3,300 touch points Continued strengthening of partnership distribution Dedicated direct distribution channel extended to 53 cities Launched pharmacy channel Widening international reach Offices in Dubai & Bahrain 27

Rapid distribution ramp-up We continue to create a nation-wide agency network, complemented by increased focus on non-agency distribution March 2006 March 2007 March 2008 421 Locations 132 1,669 Branches 177 583 1,956 Advisors ( 000) 72 234 291 Non-agency share 37% 39% 39% Rural Link 28 Expansion into rural markets through 1,004 micro branches

Rural initiative Rural Link Rural opportunity Distribution Customer servicing Rural India expected to constitute 69% of total households and 45% of household income in 2010 1 60% of rural income pool from mass affluent and upwards Multi-channel distribution Nodal branch + Micro offices Catchment area coverage of 44,000 2 villages Multiple payment and access options Multi-lingual communication Building localized service delivery capabilities 29 1. Source: NCAER 2. As of March 31, 2008

30 Rural Link

backed by a robust control architecture Functional segregation Risk management Sales process Payment process Segregation of operations and sales teams Regular MIS and internal audit reviews: Monitoring to ensure right business practices Central monitoring system State level risk control units with tie ups with professional agencies Training architecture to cover advisors and front line managers Regional language brochures and proposal form Tie ups with various agencies for cash handling Smart card solution for payouts piloted 31

Our service promise Customer Experience Statement Customer First Value Own the customer; deliver the promise FAIR Vision Statement Keep customer interest at the center of all decisions To be the dominant Promise what you can, deliver it to the end Life, Health & Pensions player built on trust by world class people & service After each experience, we want our customers to feel confident about having made the right choice We will do this by ensuring all our dealings are based on the F.A.C.T. principle. Accurate The Promise The result will be that we are their first choice for financial security so that they will stay with Consistent Proactively seek voice of customer and act on it us, buy more from us & recommend us to others Transparent 32

delivering consistent results Recognition Customer satisfaction Avaya GlobalConnect customer Responsiveness Award 2008 Web 18 and Frost & Sullivan Genius of the Web Award Tracking of key satisfaction metrics: Satisfaction with sales experience Satisfaction with service experience Complaint ratio Repeat complaint ratio Process efficiencies Identify key customer facing processes Regular monitoring of sigmas 33

Agenda Indian life insurance opportunity Organisational overview Performance highlights 34

Growth in new business : APE 1 50.00 43.81 45.00 40.00 4 year CAGR - 104% 38.80 35.00 Rs bn 30.00 25.00 20.00 15.00 10.00 5.00 2.54 7.06 12.56 21.63 0.00 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Apr-Dec 2007 1. Annualized Premium Equivalent 2. FY: Financial year ended March 31 35

Value creation: NBP 1 Rs bn 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 0.71 2.04 3.12 5.28 8.81 7.48 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Margin FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Apr-Dec 2007 NBP NBP % 36 1. New Business Profit (unaudited) 2. FY: Financial year ended March 31

Robust growth in assets held 300.00 285.18 250.00 200.00 158.18 197.69 Rs bn 150.00 100.00 50.00 0.00 6.66 0.56 6.10 March 2003 16.63 3.35 13.2 8 March 2004 38.31 10.4 8 27.83 March 2005 88.21 45.69 42.52 March 2006 95.09 63.10 March 2007 87.49 February 2008 Debt Equity Linked funds constitute 87% of total assets held 37

Expense ratio trend 80% 70% 74% 60% 50% 54% 40% 30% 26% 20% 17% 14% 14% 10% 0% FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Expense ratio: Operating expenses / (Total premium less 90% of single premium & 50% of limited pay products) FY: Financial year ended March 31 38

Summary of key achievements Sustained private market leadership: 7 years in a row Over Rs 280.00 bn (USD 7.0 bn) of assets held More than 7 million policies sold Total premiums of Rs 77.58 bn (USD 2.0 bn) in Apr-Dec 2007 NBP of Rs 7.48 bn (USD 189.9 mn) in Apr-Dec 2007 Fitch rating of AAA (Ind) Awarded most respected private life insurer 39

Safe harbour Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', 'would', indicating, expected to etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion in business, the impact of any acquisitions, technological implementation and changes, the actual growth in demand for insurance products and services, investment income, cash flow projections, our exposure to market risks, policies and actions of regulatory authorities; impact of competition; experience with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the impact of changes in capital, solvency or accounting standards, tax and other legislations and regulations in the jurisdictions as well as other risks detailed in the reports filed by ICICI Bank Limited, our holding company, with the United States Securities and Exchange Commission. ICICI Bank and we undertake no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. 40